Renting by the Room and DSCR Refi

[Shameka Henson]

Hey Ya'll,

I am nearing the completion of my first BRRRR project, which features 6 beds and 3.5 bathrooms, and I intend to rent it out by the room. However, I came across a YouTube video suggesting that lenders may look unfavorably on this rental strategy when evaluating applicants for a DSCR loan.

Could someone clarify whether this information is accurate?

[Chris Seveney]

As others mentioned - if market rent for it as a single family rental is $2,000 but you are getting $4,000 - they ignore the $4,000 and will underwrite it based on $2,000.